September 4, 2009 (FinancialWire) — Great Panther Resources Ltd. (TSX: GPR ) has reached an agreement to pay off an outstanding $2,020,000 Principal Amount 8% Unsecured convertible Loan Note due March 9, 2010 by the issuance of 3,740,741 fully paid common shares of the company at $0.54 per common share, which represents a discount of approximately 5% to the volume-weighted average trading price of the company’s shares over the last five trading days. Accrued interest will be paid in cash.

The Loan Note was issued on March 8, 2006 to City Natural Resource High Yield Trust PLC, a British Isles-based Fund.

The transaction is subject to TSX approval and the common shares will be subject to a four month hold period.

“We are very pleased by this vote of confidence by the Note holders, in converting their debt to equity. Not only does this reduce the company’s debt by more than $2 million and eliminate the corresponding interest, but in doing so, it allows us the comfort to move forward with our plans to increase the pace of development at the Guanajuato and Topia Mines,” said GPR’s president & CEO, Robert Archer.

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